Japan reports boost CTBC stock

“We believe there would be limited synergies between a Taiwan[ese] and Japanese bank,” Yang said in a note to clients last month, citing the lackluster investment in Taiwan’s Jih Sun Financial Holding Co (日盛金控) by of one of Tokyo Star’s key shareholders, Shinsei Bank.

Shinsei Bank has held a controlling stake in Jih Sun since 2006, but the latter has not seen a meaningful improvement on its return on equity since that time, Yang said.

“Also, we believe the wealth-management business requires a more extensive branch network as it is a ‘people business,’” he wrote.

Daiwa has a “hold” rating on CTBC’s shares, with a target price of NT$19.35.